The state-controlled power utility PPC’s main union group Genop, reacting against a split-and sale plan for the subsidiary power grid operator IPTO, now in progress, is taking legal action against the Greek State at the European Court of Human Rights in Strasbourg in an effort to protect worker ownership claims to company assets.
The union group intends to argue that no reference was made to these alleged ownership rights by the Greek State when IPTO’s 24 percent was placed for sale as part of a bailout-related plan.
Genop believes PPC workers possess ownership rights to PPC assets as a result of social security fund contributions made over the years.
China’s SGCC (State Grid Corporation of China) has agreed to acquire a 24 percent stake of IPTO. Ultimately, the legal action taken by Genop comes as a direct challenge against SGCC’s agreement for IPTO’s 24 percent.
The sale is approaching finalization. A 25 percent stake of IPTO still needs to be transferred to the Greek State, which, according to the split-and-sale plan agreed to by the government and the country’s lenders, will end up with a 51 percent stake of IPTO. A holding company carrying the remaining stake also needs to be listed on the bourse.
If Genop’s case against the Greek State is accepted at the European Court of Human Rights, then such a development would delay the tight IPTO sale schedule and trigger a clause included in the agreement with lenders for IPTO’s sale in its entirety.
Taking into consideration the possibility of IPTO being sold entirely, certain Genop sub-groups have refused to officially support the union in its decision to resort to legal action.